So I think at this point we can all agree that the information about trading volumes of exchange on Coinmarketcap is less than accurate. There was that report a few months where it discovered some 95% of all exchange trading volume was false and blown up. Today we have some more interesting news in the form of one guy saying that he can fake the volume of a particular token in exchange for $15,000.
This kind of market manipulation is rampant in cryptocurrency, but this is kind of shocking. This guy can’t be the only guy doing this. The individual, Alexey Andryunin, who is a student at the Moscow State University co-founded a company called Gotbit that tries to makes tokens look like they’re legitimately being traded.
It runs all on bots, which trade between exchanges to make it look life it’s there actual volume. This is obviously unethical, and worse, makes the cryptocurrency market’s reputation even worse than it already is. Apparently, the company asks for $8000 for listing on small exchanges, while getting it on Coinmarketcap costs $15,000. Smaller exchanges are at the bottom of this fake volume creating procedure.
It kinda gets worse - Andryunin said that out of the 30 or so projects that he has worked, most don’t have a working business model or working product. Only 2 or 3 do. Others, apparently, die after a few months of living on fake volume, at which the founders cash out and leave investors in the dust. That’s awful.
Personally, I find all of this extremely unethical. A lot of people are into crypto for the money, sadly, and not the market fundamentals, which is just likely to get governments even more strict with their regulations. People are losing money because other people are getting greedy. This needs to change.